Commercial General Liability (CGL)
What Is Commercial General Liability (CGL)?
Commercial general liability (CGL) is a type of insurance policy that gives coverage to a business to substantial injury, personal injury, and property damage brought about by the business' operations, products, or wounds that happen on the business' premises. Commercial general liability is considered comprehensive business insurance, however it doesn't cover all risks a business might face.
Figuring out Commercial General Liability (CGL)
Commercial general liability policies have various levels of coverage. A policy might incorporate premises coverage, which shields the business from claims that happen on the business' physical location during customary business operations. It might likewise incorporate coverage for substantial injury and property damage that is the consequence of a completed product or service done at another location.
Excess liability coverage can be purchased to cover claims that surpass the limit of the CGL policy. Some commercial general liability policies might have rejections to what activities are covered. For instance, a policy may not cover the costs associated with a product recall.
While purchasing commercial general liability insurance, the business must separate between a claims-made policy and an occurrence policy. A claims-made policy gives coverage to at whatever point a claim is made, paying little mind to when the claim event occurred. An occurrence policy is different in that it covers claims where the claim event happened during the hour of the policy even assuming the policy is presently expired.
Notwithstanding commercial general liability policies, businesses may likewise purchase policies that give coverage to other business risks. For instance, the business might purchase employment rehearses liability coverage to shield itself from claims associated with lewd behavior, wrongful termination, and discrimination. It might likewise purchase insurance to cover errors and omissions made in financial reporting statements, as well as coverage for damages, coming about because of the activities of its directors and officers.
A run of the mill commercial general insurance policy covers accidental damage or wounds yet doesn't cover wounds that are purposeful or could be expected to occur.
Special Considerations
Contingent upon its business needs, a company might have to name different companies or persons as "extra insured" under their commercial liability insurance policy. This is common when businesses go into a contract with another entity.
For instance, on the off chance that an automobile repair garage goes into a contract with ABC Co. to give cleaning services to their facility, ABC Co. may require the garage owners to add ABC Co. as "extra insured" on their commercial general liability coverage.
Illustration of Commercial General Liability
A few models that would require CGL incorporate the accompanying:
- A customer enters a place of business where the floors have as of late been cleaned and cleaned, and subsequently are extremely elusive. The customer slips on the floor and breaks their leg.
- One of the employees of an electrical company visits a permanent place to stay for an electrical wiring job and accidentally causes a fire in the customer's home.
- A notice placed by the business brings about an individual claiming libel or slander.
In every one of these cases, a commercial general liability policy could cover the cost of hiring legal counselors to safeguard the company or the cost of settling the claims. On the off chance that a business has regular claims against its CGL insurance, the insurer could raise the premium costs of the policy.
Features
- There are two types of CGL policies — a claims-made policy that covers claims paying little heed to when the event occurred, and an occurrence policy where the event must happen during a set period.
- Commercial general liability doesn't give protection against deliberate damages, or any type of accident including automobiles, aircraft, or watercraft.
- Commercial general liability policies might cover the cost of any accidental damages because of the business' operations or the legal costs of guarding a suit.
- Commercial general liability (CGL) is a form of comprehensive insurance that offers coverage in case of damage or injury brought about by a business' operations or products, or on its premises.
- Companies can add different companies or individuals they contract with to their commercial liability insurance policy as an "extra insured."
FAQ
The amount Does Commercial General Liability Insurance Cost?
Normally, the cost of Commercial General Liability Insurance will rely upon the size of the business being insured, the peril of its business operations, and the amount of coverage required. A few insurers say that their clients pay somewhere in the range of $300 and $600 for 1,000,000 dollars of insurance coverage. Others say their clients might pay as much as $1,000.
What Damages Does CGL Insurance Cover?
Commercial General Liability insurance covers wounds to a person or property damage that happens in the vicinity of a business. This type of policy can likewise shield a business from claims of slander, libel, or advertising injury.
What Is Not Covered Under Commercial General Liability Insurance?
Most CGL policies don't cover deliberate or expected damage by the insured. They likewise don't cover damages due to inebriation (in alcohol-related businesses), pollution, automobiles or different vehicles, damage to a business' work, or extra liabilities that the insured could take on. A business that is implied in these types of risks ought to purchase extra insurance to be completely covered.
